Workhorse Group, Inc. · NASDAQ:WKHS
Workhorse — Q1 2023 Earnings Presentation
19 slides from Workhorse's earnings presentation, May 15, 2023
Slide 1: Q1 2023 Earnings Call
Q1 2023 Earnings Call May 15, 2023 © Copyright 2023 Workhorse. Confidential & Proprietary | 1
Slide 2: Today's Presenters
Today’s Presenters Rick Dauch Bob Ginnan Stan March CEO CFO Vice President, Corporate Development • 28 years automotive industry • 23 plus years of senior finance and • 27 years executive experience across experience leadership experience multiple industrial sectors • 16 years serving in CEO roles •
Slide 3: Agenda
Agenda Introduction Business Update Q1 Financials 2023 Guidance Q2 Priorities / Summary Q&A
Slide 4: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements The material in this document contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Liti
Slide 5: Being a "Pioneer" is Not Easy
Being a “Pioneer” is Not Easy “A pioneer pushes boundaries to advance a cause or idea. These men and women have experienced success in their field, sometimes by overcoming great challenges.” © Copyright 2023 Workhorse. Confidential & Proprietary | 5
Slide 6: Generational Shift to EV-powered Commercial Vehicles is Underway
Generational Shift to EV-powered Commercial Vehicles is Underway California’s Advanced California’s Advanced Clean Truck Rule Clean Fleets California’s ACT Rule is a sales requirement California Air Resources Board (CARB) is for manufacturers of medium and heavy-duty developing a medium and heavy-du
Slide 7: Advanced Clean Truck Regulation
Advanced Clean Truck Regulation OEM Zero Emission Vehicle Sales Requirements 80% 70% 60% 50% 40% 30% 20% 10% 0% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Class 2B-3 Class 4-8 Class 7-8 Tractors © Copyright 2023 Workhorse. Confidential & Proprietary | 7
Slide 8: Advanced Clean Truck – National Impact
Advanced Clean Truck – National Impact © Copyright 2023 Workhorse. Confidential & Proprietary | 8
Slide 9: Key Accomplishments in the First Quarter
Key Accomplishments in the First Quarter Advancement of Commercial Vehicle Programs Progress in Stables & Stalls • Upgraded vehicles, ramped up production of W4 CC vehicles; • Continued execution of delivery routes for FedEx Ground slow start to ‘23 but strong order book building • Expect to electri
Slide 10: Product Portfolio Plan Update
Product Portfolio Plan Update W4 CC CL4, 5000-lb payload, 150-mile range Back Panel • Chassis deliveries on track, >200 units in Q1 and 500-600 in 2023 • Component upgrades installed to meet Workhorse quality standards, which required supplier tooling • Slower than expected production and delivery i
Slide 11: Product Portfolio Plan Update
Product Portfolio Plan Update W56 CL5-6, 10,000-lb payload, 150-mile range • Program on track and on budget for Q3 launch • Pilot and 8 of 12 program builds complete • Components, systems, full-vehicles in testing • 100% part sourcing; supplier readiness by Q3 • Successful unveiling at NTEA and ACT
Slide 12: Establishing Certified Dealer Network
Establishing Certified Dealer Network • Workhorse is establishing a nationwide certified dealer network, targeting dealer locations in key ‘EV Ready’ markets • Securing manufacturing licenses in 22 states • Workhorse expects to generate dealer stocking orders during 2023, primarily for W4 CC and W75
Slide 13: Stables & Stalls
Stables & Stalls Continued execution of fleet electrification initiative to serve independent contractors and operators • Renewed contract with FedEx Ground in Ohio with expanded route coverage • Expected to be converted to EV by the end of Q2 2023, primarily W750 pilot step vans • Exploring opportu
Slide 14: Aerospace Update
Aerospace Update HorseflyTM Falcon -- Humanitarian Assistance and • Successfully demonstrated UPS Flight Forward testing Logistics Operations (HALO) standards (payload, flight distance, multiple aircraft) • Successfully completed demonstrations for U.S. military; about • Successfully completed demon
Slide 15: Financial Summary Highlights
Financial Summary Highlights First Quarter 2023 Unaudited Results Sales Three Months Ended March 31 Net sales growth was primarily driven by ($ millions, except EPS and shares) 2023 2022 W4 CC sales Sales, net of returns and allowances $1.7 $0.0 Cost of sales 5.3 3.9 Cost of Sales Gross loss (3.6) (
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights ($ millions, except shares) March 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents $79.1 $99.3 No Debt Accounts receivable, net $1.8 $2.1 Other receivables 15.0 15.0 Inventory, net 21.9 8.9 $79.1 Million Prepaids expenses and other current assets 15
Slide 17: Financial Summary: 2023 Guidance
Financial Summary 2023 Guidance $75 – $125 Million Revenue Reaffirming Revenue Guidance Workhorse expects to generate between $75-125 million in revenue for calendar year 2023, assuming current supply chain lead times remain unchanged. © Copyright 2023 Workhorse. Confidential & Proprietary | 17
Slide 18: Q2 Priorities
Q2 Priorities Advance Product Roadmaps Aerospace Business • Ramp up production & delivery for W4 CC • Earn and fulfill initial purchase orders for drones • Begin production of W750 • Start of regular production • Complete vehicle testing and equipment • Earn USDA grant(s) installation for start of W
Slide 19: Questions?
Questions? 19